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January 12, 2010

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Electricity in the air as Detroit auto show opens

ELECTRIC, hybrid and small cars will grab center stage at the Detroit auto show this week, as the industry adapts to a world reshaped by the recession and environmental concerns.

Ford wants to build on its success in midsize sedans and re-ignite its small car sales, while Hyundai aims to extend last year's triumph in budget-conscious models. GM and Chrysler will start fresh with electric vehicles but also try to boost their small-car credibility. Toyota hopes to solidify its dominance in hybrids.

The new crop of models must be successful if auto makers are to reverse last year's 21 percent sales plunge. Mounting job losses, GM and Chrysler's bankruptcy filings and the death of several iconic brands sent sales skidding to their lowest level since 1982.

Americans feel less wealthy - and more certain that the trend toward higher fuel prices remains a threat. It's a change United States auto makers were slow to embrace - and it cost them the last two years as gas prices surged and consumers stopped spending. Most Japanese and European car makers also suffered.

This year, with frugality embedded in drivers' minds, auto makers want to show off new versions of smaller, less expensive cars. That also appeals to motorists concerned about climate change.

One major display is a 3,400-square-meter "Electric Avenue" on the main floor, featuring 20 vehicles that run on electricity instead of gasoline. Electrics were shown last year, but shared the spotlight with cars powered by conventional engines.

China's BYD Co Ltd plans to show its F3DM plug-in hybrid compact sedan and the new e6 that could come to the US late this year.

But, unlike the past few years, Chinese auto makers will largely skip the show, perhaps because they're focusing on their own country's explosive sales growth.




 

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